Hello all, this is my first post on the forums so go easy on me.
I’m a newbie trader on the Forex markets, only opened my first trading account in May and have been reading as much as I can about trading and trying to be profitable, however I seem to be confused with the technical analysis of CCI and EMA for entries and exits from trades.
What periods are best to use for this analysis? I’ve seen suggestions of using 20 periods for these studies but other suggestions are to use 12 periods, 16 periods and 24 periods, or 12 and 24 together in unison.
I’m keen to find out what other traders find most useful? Also whether certain periods are more or less useful for different time charts or different currency pairs.
Your second question what periods depends on how you are trading. For trends Longer term traders use 100+ moving averages. Shorter term traders might use a 60 moving average or below. For entries I use to use a 5 period and 3 period cross. Before you can use these indicators to get max value, you need to know what you want the indicator to tell you. I use a 30 EMA and a 60 period simple moving average to get a feel for medium to short term trends. I also used the CCI indicator, it was one of my favorites, I set a line at 50% went to a 1 minute or 5 minute chart above the line go long below go short.
If I were you, like I said look up the definitions, once you do that, go to utube and search Moving Average Strategies and CCI strategies to get some ideas from other traders who are using these indicators, see which strategies appeal, open a demo and try it out. Hope that helps. Good Luck
Gp
One flaw I would like to point out (at least in my opinion) is that you opened your trading account first and then do the research (please correct me if I am wrong). The reason why I am pointing it out is that I have met countless new traders who do not take the proper time to learn the basics and rush to opening an account and then funding it in order to blow it for no good reason.
Well yes and no, I opened a live account to be able to learn to trade with the fear of losing real money, something not easily gained on a demo, however any new trading strategy I try out I have been trying on a demo first then transferring to live. Currently I am at break even after 3 months of trading and I am closing about 10 trades a week so I can’t complain too much but perhaps in hindsight yes, I could have researched more. When my trading becomes frequently profitable I plan to invest more than my current small value but I’m not yet prepared to invest as my strategy is not quite there yet…
